August 4, 2025 05:21 PM seekingalpha.com Negative

India will keep buying Russian oil despite Trump threats - report

BNO DBO DRIP EPI FLIN GUSH INCO INDY IVV RSP SCO SDS SH SO SPXU SPY SSO U UCO UPRO USL USO

[Russia and India map flags on black background]
Bilal photos/iStock via Getty Images

India said it will continue buying oil from Russia despite threats of penalties from U.S. President Trump, according to a _Reuters_ report that cites government sources.

Trump had indicated additional penalties over Russian oil and arms purchases, alongside a new 25% tariff on Indian exports. Trump told reporters that he had heard that India would no longer be buying oil from Russia.

However, Indian sources had indicated that, “These are long-term oil contracts,” adding [https://www.reuters.com/business/energy/india-maintain-russian-oil-imports-despite-trump-threats-government-sources-say-2025-08-02/] it's not feasible to halt purchases abruptly.

Another official argued that India's imports of discounted Russian oil have helped stabilize prices. Unlike Iranian or Venezuelan crude, Russian oil isn’t under direct sanctions, and India is buying it below the EU price cap. The Indian government has not issued any directive to oil companies to curb Russian imports.

Russia now accounts for about 35% of India’s total oil imports, with India being the world’s third-largest oil importer and consumer.

The White House has not clarified what specific penalties might be imposed if India continues to ignore these warnings, while China and Turkey—other major buyers of Russian oil—have not faced similar threats from the U.S.

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